BNP profits exceed expectations

See BNP Paribas shares

BNP Paribas has reported three-month profits that were better than expected, suggesting it has not been as hard-hit by the credit crunch as its peers.

Net profit for the first three months of 2008 came in at 1.98bn euros ($3.05bn; £1.57bn), down 21% from the same period of 2007.

The bank took a write-down of 546m euros from its exposure to debt based on US sub-prime mortgages.

BNP Paribas shares rose 2% in early trading in Paris.

In its statement, the bank described the first three months of the year as being "marked by a markets crisis of a rare violence".

Profits from its French retail banking operations rose 6.9%, making up for some of the 73% fall in the profits from its investment and corporate banking operations.